Alibaba acts as a middleman, connecting buyers and sellers.
It has three divisions under it’s brand, Taobao, Tmall and Alipay. Taobao is a
website which connects sellers to buyers and caters primarily to small businesses while Tmall is designed
for bigger merchants. Alipay is a savings and payments wallet for customers.
REVENUE MODELS
Taobao’s Revenue
Model – Merchants pay Alibaba for advertising and other services to promote
themselves.
Tmall’s Revenue Model
– Merchants pay a deposit, an annual fee and a commission fee on sales.
Alipay’s Revenue
Model – Vendors pay a fee for every transaction through the service.
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